Question
HM furniture pls sale a guest chair in its shope located in adiss ababa.all inventaries are maintained at a firms centrally located warehouse.anual demand is
HM furniture pls sale a guest chair in its shope located in adiss ababa.all inventaries are maintained at a firms centrally located warehouse.anual demand is 3,600,000 chairs and spread uniformly throughout the year.the cost of placing and recieving an order is br 1000.firm's anually carying cost are 20% of inventory value.the cost of an inventory is br 1000 per chair. in addition, the lead time is assumed 10 days and considers 365 numbers of days in the year.
a. compute economic order of quantity
b.how much will be the total carying cost
C.How much will be the total ordering cost
d.determine the reorder point and interpret it
e.how much will be the reorder point if the firm planned to hold 20,000 units of chairs as safety stock
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